Navy Awards $271M to Vigor Marine for USS KIDD Modernization, Lacking Competition

Contract Overview

Contract Amount: $271,040,632 ($271.0M)

Contractor: Vigor Marine LLC

Awarding Agency: Department of Defense

Start Date: 2024-10-25

End Date: 2026-08-03

Contract Duration: 647 days

Daily Burn Rate: $418.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS KIDD (DDG 100) FY25 DEPOT MODERNIZATION PERIOD

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98134

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $271.0 million to VIGOR MARINE LLC for work described as: USS KIDD (DDG 100) FY25 DEPOT MODERNIZATION PERIOD Key points: 1. Significant contract value of $271M for ship modernization. 2. Sole-source award to Vigor Marine LLC raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Shipbuilding and Repair sector sees substantial investment.

Value Assessment

Rating: questionable

The contract value of $271M is substantial for a single vessel modernization. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar depot modernization efforts for destroyers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Vigor Marine LLC. The lack of competition limits price discovery and may lead to a less favorable price for the government.

Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive pressure to drive down the price for this significant modernization effort.

Public Impact

Modernization of a key naval asset, the USS KIDD (DDG 100), ensuring its operational readiness. Potential impact on future shipbuilding and repair contract awards and competition strategies. Significant taxpayer investment in maintaining naval fleet capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Sole-source award

Positive Signals

Modernization of critical naval asset
Firm fixed price contract

Sector Analysis

The shipbuilding and repair sector is capital-intensive and often involves complex, high-value contracts. This $271M award represents a significant portion of spending within this niche, particularly for naval vessel maintenance and upgrades.

Small Business Impact

No information is provided regarding small business participation in this contract. The sole-source nature may limit opportunities for small businesses to subcontract.

Oversight & Accountability

The Department of the Navy awarded this contract. Oversight will be crucial to ensure Vigor Marine LLC delivers the modernization effectively and within the firm fixed price, especially given the lack of competition.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competitive bidding
High contract value
Potential for cost overruns if not managed tightly

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $271.0 million to VIGOR MARINE LLC. USS KIDD (DDG 100) FY25 DEPOT MODERNIZATION PERIOD

Who is the contractor on this award?

The obligated recipient is VIGOR MARINE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $271.0 million.

What is the period of performance?

Start: 2024-10-25. End: 2026-08-03.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The provided data indicates the contract was 'NOT COMPETED' and awarded via a 'sole-source' method. A thorough review would require access to the contract's justification for other than full and open competition (J&A) to understand the specific reasons and whether alternatives were explored before this determination was made.

How does the $271M modernization cost compare to similar depot modernization periods for DDG-class destroyers?

Benchmarking this $271M cost against similar depot modernization periods for DDG-class destroyers is challenging without access to historical data on comparable contracts. The lack of competition makes it difficult to establish a fair and reasonable price based on market rates for similar services.

What are the potential risks associated with a sole-source contract of this magnitude for vessel modernization?

The primary risks include inflated pricing due to the absence of competitive pressure, potential for scope creep if not tightly managed, and reduced incentive for the contractor to innovate or optimize costs. Ensuring strict oversight and performance metrics is critical to mitigate these risks.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002424R4402

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vigor Industrial LLC

Address: 5555 N CHANNEL AVE BLDG 71, PORTLAND, OR, 97217

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $271,770,149

Exercised Options: $271,767,258

Current Obligation: $271,040,632

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $10,906,897

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline